The board of Telecom Italia (TIM) has fully backed its chairman Fulvio Conti following a meeting to respond to a report by its auditors. The report had found irregularities with the way in which information had been shared with board members ahead of the sacking of chief executive Amos Genish in November. However, in a statement TIM reasserted Conti’s independence and underlined that “the board… reiterates its full confidence in the work of the chairman.”
The company’s shareholders are due to meet on 29 March to examine a proposal by leading investor Vivendi to remove five directors appointed by US activist fund Elliott on grounds of a “substantial lack of independence”. These include Conti plus four other board members (Alfredo Altavilla, Massimo Ferrari, Dante Roscini and Paola Giannotti de Ponti).The French media giant claims the board members conspired to replace Genish, a former Vivendi executive, in a move it described at the time as "shocking ... sudden, very unusual and very destabilising". Genish still sits on TIM’s board and, according to Reuters, was asked after the latest board meeting whether Conti was stepping down. “I wish,” he replied.
Elliott seized control of the board of directors in May, when 10 of its proposed independent candidates were appointed, together with 5 Vivendi-nominated directors, in a 15-strong board. Three proxy advisers including Glass Lewis and ISS have in the past week recommended that investors vote against Vivendi’s proposals.
